Taxpayer Scores Partial Success in Cal. Hotel Property Tax Suit

Business Valuation UpdateVol. 20 No. 8
Legal and Court Case Update
August 2014
7011 Hotels and Motels
721110 Hotels (except Casino Hotels) and Motels
state taxation (incl. ad valorem)
goodwill, cost approach, income approach, intangible assets, appraisal, market value, deduction, property tax, purchase price

SHC Half Moon Bay, LLC v. County of San Mateo
2014 Cal. App. LEXIS 446
May 22, 2014
US
State Court
California
Court of Appeals
James A. Gavin, Duff & Phelps (plaintiff/appellant); Thomas E. Callahan, First Service PKF Hospitality (defendant/respondent)
Jones

Summary

Appeals court says assessor’s version of income approach to determine hotel property taxes violates law because it does not identify, value, and exclude certain intangible assets; but management fee deduction largely captures hotel’s goodwill.

See Also

SHC Half Moon Bay, LLC v. County of San Mateo

Appeals court says assessor’s version of income approach to determine hotel property taxes violates law because it does not identify, value, and exclude certain intangible assets; but management fee deduction largely captures hotel’s goodwill.